It is reported that a basic legal framework on intermediary liability for copyright infringement is absent in Nicaragua's law and jurisprudence.

Nicaragua has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

It is reported that, from 2019 onward, Nicaragua’s Customs Authority (Dirección General de Aduanas, DGA) began systematically requiring importers to provide proof of origin for products that had previously been treated as originating in the United States, including through the use of detailed questionnaires seeking extensive product information. Multiple businesses report that the information requested may include proprietary business data or trade secrets.
Businesses have reportedly sought to agree on alternative means of substantiating origin without disclosing sensitive information, including site visits to production facilities and interviews with relevant staff. However, it is reported that the DGA has rejected such arrangements and, in several cases, has initiated administrative proceedings to withdraw preferential tariff treatment and to claim retroactive duties for periods during which the products were imported under preferential treatment.

Act No. 354 provides a legal framework for the protection of trade secrets. Chapter XVIII addresses unfair competition and includes provisions defining trade secrets (Arts. 122–123), establishing civil actions to cease or prevent unlawful acts and to obtain compensation for damages (Art. 126), and providing for criminal penalties (Art. 132). In addition, Arts. 275–277 of the Criminal Code criminalise: (i) the misappropriation of trade secrets; (ii) the unlawful disclosure or exploitation of a trade secret by a person subject to a duty of confidentiality; and (iii) the use of a trade secret obtained unlawfully.

There is no obligation for passive infrastructure sharing in Nicaragua to deliver telecom services to end users. However, it is reported that passive infrastructure sharing is practised in both the mobile and fixed sectors based on commercial agreements.

Nicaragua does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of accounting separation since 2025. Pursuant to Art. 110 of the General Act on Convergent Telecommunications (Law No. 1223), SMP operators and service providers must provide information on costs, revenues, and assets disaggregated by service, based on a regulatory accounting system they are required to implement in accordance with the rules issued by the Nicaraguan Institute of Telecommunications and Postal Services (TELCOR) for that purpose.

Nicaragua has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

The country has a telecommunications authority: The Nicaraguan Institute of Telecommunications and Post (TELCOR). However, it is reported that the decision-making process of this entity is not fully independent from the government. Art. 1 of Decree-Law No. 1053 - Organic Law of the Nicaraguan Institute of Telecommunications and Postal Services establishes the TELCOR as the main regulatory body for telecommunications providers. The Institute is meant to operate as a decentralised entity with independent assets. However, it is reported that TELCOR fails to uphold the principles of neutrality and independence, as it is essentially a government institution that responds to government policies.

According to Art. 14 of the Personal Data Protection Law, the assignment and transfer of personal data of any kind to countries or international organisations that do not provide adequate levels of security and protection is prohibited. Art. 14 further states that the transfer to foreign countries is allowed in certain circumstances, including international judicial collaboration, exchange of personal data in health matters, bank or stock transfers, agreed transfer within international treaties, or international cooperation between intelligence agencies regarding crimes regulated in Law No. 735 for the prosecution of organised crime.

Nicaragua has not joined any free trade agreement committing to open transfers of cross-border data flows.

The Personal Data Protection Law and its regulations constitute the framework for data protection. Moreover, the Political Constitution of Nicaragua also provides certain general rights concerning privacy and data collection.

Art. 19.f of the Personal Data Protection Law stipulates that every individual has the right to have their personal data retained for five years, or for the period agreed between the parties under the applicable contractual provisions, and likewise when such data is no longer adequate, proportionate, or necessary for the scope and purposes for which it was initially collected. Art. 24 further provides that personal data files collected and processed for administrative purposes must be retained for five years.

According to Art. 36 of Law No. 1042, telecom providers must retain data for all users for one year. A local judge may issue an order, at the National Police or Prosecutor General’s request, to force internet providers to release specific information about an individual customer, as well as collect, extract, or record data about this customer, such as real-time data traffic.
As part of the implementation of Law No. 1042, the Nicaraguan Institute of Telecommunications and Postal Services (TELCOR) published Administrative Agreement 001-2021 on Regulations for the Preservation of Data and Information. Art. 3 requires telecommunications companies to collect and preserve any data necessary to trace a communication; identify the recipient of a communication; determine the time, date, and duration of a communication; identify the type of communication, such as mobile phone, internet, or landline phone; identify the equipment used to conduct a communication; and identify the geolocation of the equipment used for communication. In addition, companies offering community repeaters and trunk links must be able to submit information on the services they provide. Art. 5 of the agreement further requires companies to store the relevant information for up to 12 months.

Nicaragua has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.